Commodity Trade Mantra

Posts Tagged ‘Bullish for Gold’

Gold Investment Demand Surge without a Real Stock-selloff Highlights it's Huge Potential

American stock investors are starting to return to gold despite the stock markets remaining near or at all-time record highs. These lofty Fed-goosed stock markets are long overdue for a major correction or more likely a new bear market. Whenever that fateful event inevitably arrives, gold investment demand is going to explode & will once again almost certainly propel gold prices dramatically higher.

Dollar's Long-term Downtrend will have Positive Impact on Gold Prices

The charts for the dollar index continue to look grim. On the 8-month chart we can see it dropping away beneath a parabolic downtrend that is accelerating to the downside. If this parabolic downtrend continues to force the dollar lower it should have a positive impact on the gold price, although it hasn’t thus far. Further significant weakness in the dollar should of course be bullish for gold and silver.

Report on Currency Manipulation Expected to be Bullish for Gold Prices

The US Treasury report on currency manipulation was ordered by Donald Trump to address the issue of countries manipulating their currencies. The report is expected to have a strong impact on the currency markets. The most bullish outcome for gold prices would be if the report actually named a big country a currency manipulator, as it could trigger risk-off trading which would benefit bullion.

Negative Real Rates to Drive Gold Prices Higher Despite Fed Hikes

With arguably the two biggest drivers of the gold price trending in the yellow metal’s favor, gold prices are likely to go higher. Although the dollar could rise if Washington implements some structural reform, real rates aren’t headed higher anytime soon based on the Fed’s actions. If past is prologue, as inflation rises over the coming months, gold will do very well.

Gold Prices To Move Higher Even If & When The Fed Hikes Rates

It’s very interesting to see gold prices going up despite a challenging environment of higher rates & a manipulated paper market. That tells me that there’s more to the story, that there’s more going on behind the scenes that’s driving the gold price higher. I’m very impressed with the present gold action & here’s why I expect gold prices to really take off going forward.

Trump’s Agenda will fuel Bigger Deficits, Debt & Inflation: Super-Bullish for Gold

No matter how awesome Trump’s pro-growth economic policies ultimately prove, these Fed-levitated stock markets near bubble valuations still face an overdue bear. And Trump’s big-spending agenda is going to fuel bigger deficits, bigger debt, and inflation for years to come. That’s super-bullish for gold since it tends to move counter to stocks.

Can You Guess the US Election Winner? It's Obviously - Gold

Investors are on edge…and we can’t blame them. The S&P 500 has fallen nine straight days. Safe-haven demand maybe set to rise as the US election is now just days away. Unlike past elections this one appears to grown more uncertain and fraught the closer it gets. There’s one certain winner of next week’s presidential election, according to HSBC: Investors in Gold.

Is Gold and Silver Bull Market Intact or will US Dollar Strength Crush it?

Conventional wisdom would tell us with the US$ index nearing a major breakout, gold and silver would be vulnerable to further losses. Ultimately, as long as Gold and silver’s fundamental driver – declining or negative real interest rates remain in place, then the fledgling bull market will remain on track. With inflation poised to rise, real rates are likely to decline further in 2017.

Comex A Zombie Market: Hedge Funds Record Short Paper Gold

You may ask yourself, how do you kill a zombie? As a market for the trading of physical gold and silver, the Comex is already dead. At some point, the entities who have stuck around to try their hand in the rigged paper game will either go broke or simply fade away. At that point, the bullion banks will be left to play only with themselves.

Rate Hike Or No - The Fed Will Not Kill Gold

The Fed either raises rates by 25 basis points in December, or it doesn’t. Both scenarios are actually bullish for gold. Doing nothing is good for gold for obvious reasons. But if they actually do hike, the gold market has already discounted the rate increase, likely factoring in substantially more than 25 basis points.

Gold Price Correlation With Federal Funds Rates Since 1971

Everyone assumes higher interest rates will devastate zero-yielding gold, leaving it far less attractive. This premise led investors to avoid gold like the plague, and speculators to short sell it at wild record extremes. But provocatively, history proves gold price thrives in Fed-rate-hike cycles. Higher rates are actually bullish for gold.

Will There Be a New Gold Rush?

Even though the amount of dollars is going up, eventually debt will be wrung out of the system. This causes deflation, which is very bullish for gold. In deflation, both creditors and debtors are in dire straits. They’re facing enormous pressure. People tend to turn towards stores of value like gold.

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